Vietnam's SOE Sector Poised for Quality Transformation Under Resolution 79

Vietnam's government is taking a significant step to redefine and accelerate reforms within its State-Owned Enterprises (SOEs) sector. The newly introduced Resolution 79 reclassifies SOEs from being the "primary material force" of the state to an "important material force." This shift aims to concentrate their activities on key strategic industries and sectors essential for national development, thereby strengthening their pioneering, enabling, and leading role. Under Vietnam's one-party system, SOEs have long been a cornerstone of the economy. However, issues such as inefficiency and declining competitiveness have also been noted. This resolution is intended to address these challenges and drive a qualitative transformation of SOEs. The "Top 50 Prestigious and Effective Public Companies for 2026" unveiled by Vietnam Report serves as an indicator of corporate performance in the market. Furthermore, promoting the equitisation (shareholding reform) of SOEs is considered crucial not only for improving their quality but also for attracting foreign capital. This initiative is expected to guide SOEs towards management practices aligned with international standards. The State Bank of Vietnam has also formulated an action plan for the development of the state-owned economic sector, underscoring the government's strong commitment to SOE reform. While these reforms are anticipated to contribute to Vietnam's sustainable economic growth and enhanced international competitiveness, it is also important to monitor potential impacts on employment resulting from the restructuring of SOEs during this process. Information Source: VietnamPlus English